1) Do I have enough equity to get a mortgage? To get a conventional loan, you will usually need to have at least 20 percent equity. This means that your house will have to be worth at least $250,000 to get a $200,000 loan. If you have less equity, you could end up having to pay for private mortgage insurance, which can easily add $100 or more to your monthly payment. 2) How's my credit? Most lenders will look at your credit score as a part of determining whether or not to make you a loan. With … [Read more...]
What Are The Benefits And Drawbacks Of Putting 20 Percent Down On A Home Purchase?
Several generations ago, lenders required home buyers to have a 20 percent down payment in order to get a mortgage. While there were a few options out there for people who couldn't save this substantial amount, the reality was that for the majority of people, the 20 percent down was a requirement. It was the way to show that you were financially responsible enough for homeownership. And it was a strong way that the banks felt secure in making a home loan. Today, however, homebuyers have many … [Read more...]
What Items Can Change My Mortgage Pre-Approval Status?
When you are purchasing a home, your lender may recommend you obtain a mortgage pre-approval before you find the home of your dreams. There are some benefits to being pre-approved before you find a home, but oftentimes, people confuse pre-qualifications with pre-approvals. So the question many buyers have is what exactly is a mortgage pre-approval? In a nutshell, it's when the lender provides you (the buyer) with a letter stating that your mortgage will be granted up to a specific dollar amount. … [Read more...]
Can I Have A Co-Signer For My Mortgage Loan?
Like credit cards or car loans, some mortgages allow borrowers to have co-signers on the loan with them, enhancing their application. However, a co-signer on a mortgage loan doesn't have the same impact that it might on another loan. Furthermore, it poses serious drawbacks for the co-signer. Mortgage Co-Signers A mortgage co-signer is a person that isn't an owner or occupant of the house. However, the co-signer is on the hook for the loan. Typically, a co-signer is a family member or close … [Read more...]
